Hyundai Motor Company, the parent company of the Hyundai, Kia, and Genesis brands, has announced a significant investment in its electric vehicle (EV) range and production. The company will invest 10.5 trillion won ($8.5 billion) in 2022 to expand its EV offerings and build its first-ever EV factory in the United States.
Of the $8.5 billion, $5.5 billion will be allocated towards building the new EV factory in Georgia, set to begin construction in Q1 2022. The remaining $3 billion will be used for research and development of current and future EVs across all brands.
Hyundai currently produces several EVs, such as the Hyundai Ioniq 5, Kia EV6, and Genesis GV60, but also produces a significant number of internal combustion-engined models. The new factory in the US will be exclusively dedicated to the production of EVs, and through strategic partnerships with local battery suppliers, Hyundai's EVs will be eligible for federal tax credits under the Inflation Reduction Act (IRA), which should increase adoption of the company's zero-emission vehicles.
In 2023, Hyundai aims to sell 73,000 EVs in the US, a 150 percent increase compared to last year, and a worldwide sales volume of 330,000 electric cars, a 54 percent increase from 2022. With 12 manufacturing facilities worldwide, Hyundai is the third largest automaker by volume, behind Toyota and Volkswagen. In 2022, the company sold nearly 7 million cars worldwide and saw its operating profit double in the last quarter.
